Traders on Twitter seem to be indicating that investors should take some profits here during this ‘consolidation zone.’ After plummeting to below $9,500, Bitcoin (BTC) has quickly regained some footing and is bouncing over and under $10,000 at the time of writing.
If one wants to see the true mania involved with day trading Bitcoin, they don’t have to look further than Twitter. Crypto Loomdart (@loomdart) has been posting charts throughout the recent price collapse, but now seems to agree with other traders that it’s time to take some short-term profit.
Yesterday, he wrote that Bitcoin was sitting at “the last support before 8k” and was not hopeful regarding any long-term prospects. Yet, there was little room to short this local-low since BTC quickly rebounded after a moment of despair.
It is this $10,150 – $10,300 zone that Loom calls a critical ‘consolidation zone.’ Moreover, it might have been the last good place to take profits. Given that RSI is still low, and fear is crippling the crypto-sphere, Bitcoin may be poised for another leg down.
Sit Back, Relax
The recent volatility is nothing new to Bitcoin, but it is strange given how it was following gold so closely for the past month. With the entangling trade wars and currency squabbles globally, Bitcoin was increasingly considered as a ‘hedge’ against chaos. Though, it seems that this speculative basis for its price action has found its short-term end. Bitcoin may rise further from this price point, but it will have to consolidate a bit further before we can regain any bullish momentum. As for now, the Crypto Fear & Greed Index is sitting at around 13 — ‘extreme fear.’
Smart traders are likely looking at this zone as a time to take some profits and simply wait out the volatility.
Do you believe we are due for another leg up or will Bitcoin form another lower local bottom? Let us know your thoughts below.
Images are courtesy of Twitter.